o 
o 
o 


A 


THE 

FUTURE  OF  TRADE 

BETWEEN 

THE  UNITED  STATES  OF  AMERICA 

AND  THE  NETHERLANDS  AND 

ITS  COLONIES 

A  SHORT  STUDY 


BY 
H.  A.   VAN    COENEN    TORCHIANA 

OF  THE  CALIFORNIA  BAR 

CONSUL  GENERAL  OF  THE  NETHERLANDS 

FOR  THE  PACIFIC  COAST  STATES 


8AN  Francisco,  Cal. 

NOVEMBER    11.    1918 


MARCH  11,  1919— THIRD  EDITION 


ervvAii^N.  cvu^iar 


J>d4  A 


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Table  of  Contents  K^Ala  J 

Page 

Foreword,  by  Mr.  J.  C.  van  Panthaleon  Baron  van  Eck, 
President  Holland-American  Chamber  of  Com- 
merce for  the  Pacific  Coast  States 5 

Chapter      I.     The   Psychological   Factors 7 

Chapter    11.    Trade  with  the  Mother  Country 23 

Chapter  III.     Trade  with  the  Netherlands  East  Indies.  .  31 

Chapter  IV.    Trade  with  the  Netherlands  West  Indies.  45 


Additional  copies  will  he  supplied  to  interested 
parties  hy  applying  in  person  or  by  letter  to 
the  undersigned. 

L.  H.  HYMANS, 

Secretary  of  the 

Holland  -  American    Chamber    of    Commerce 

^55  Montgomery  Street, 

San  Francisco,  California. 


397506 


Digitized  by  the  Internet  Archive 

in  2007  with  funding  from 

IVIicrosoft  Corporation 


http://www.archive.org/details/futureoftradebetOOtorcrich 


Foreword 

To  Our  Members  and  Friends: 

It  affords  us  great  pleasure  to  present  in  pamphlet  form 
two  articles  written  at  the  request  of  the  "New  York  Com- 
mercial" by  Mr.  H.  A.  van  Coenen  Torchiana,  the  Netherlands 
Consul  General  at  San  Francisco.  They  deal  with  the  future  trade 
relations  of  the  United  States  and  the  Netherlands  and  its  Colonies. 

The  author  kindly  consented  that  we  make  such  use  of  the 
articles  as  we  might  deem  advisable. 

The  subject  treated  is  most  opportune,  for  questions  of 
international  trade  command  just  now  the  attention  of  the 
entire  commercial  and  industrial  world. 

Readjustments  of  far-reaching  importance  in  commercial 
relations  will  take  place  in  the  near  future,  for  the  post-war 
channels  of  trade  will  be  materially  changed. 

The  horizon  of  the  new  international  commerce  is  steadily 
broadening,  and  now  presents  a  far-flung  view  to  those  who 
can  read  the  signs  and  act  accordingly. 

The  necessities  of  war  gave  rise  to  more  extensive  trade 
and  shipping  relations  between  the  United  States  of  America  and  the 
Netherlands  East  Indies.  These  relations  should  be  expanded,  not 
contracted.  All  the  opportunities  for  such  an  expansion  are  there. 
Will  those  opportunities  be  realized? 

As  many  points  of  great  importance,  bearing  upon  this 
question,  are  discussed  in  the  following  articles,  we  hope  that  by 
their  further  publication  and  wider  distribution  we  shall  assist 
in  the  furtherance  of  these  trade  relations. 

Holland- American  Chamber  of  Commerce 

FOR  THE  Pacific  Coast  States. 

By  J.  C.  VAN  Panthaleon  van  Eck, 

President. 


Chapter  I. 

The  Psychological  Factors 

Half  a  dozen  years  ago,  if  I  had  been  requested 
by  the  Foreign  and  Export  Editor  of  the  "New  York 
Commerciar*  to  give  my  views  as  to  the  future 
development  of  business  relations  between  the  United 
States  of  America  and  the  Netherlands  and  its  Col- 
onies, the  answer  would  have  been  comparatively  easy, 
for  the  problem  involved  would  by  no  means  have  been 
as  complex  as  it  is  to-day. 

Prior  to  the  outbreak  of  the  great  World  Strug- 
gle, the  question,  broadly  speaking,  would  have  in- 
volved financial  and  commercial  problems  pure  and 
simple,  unaffected  by  general  world  spiritual  condi- 
tions. At  that  time  it  would  have  involved  study  and 
analysis  of  the  resources,  past  and  present,  of  those 
countries,  their  colonial,  financial  and  commercial 
relations,  their  logical  development  of  these  resources 
and  of  their  maritime  possibilities.  It  would  not 
have  been  difficult  to  arrive  at  a  reasonable  conclusion 
as  to  the  development  to  be  expected  in  the  future. 
Formerly,  as  a  matter  of  course,  one  would  have 
turned  to  statistics;  statistics  partly  contained  in 
official  documents — for  instance.  Departmental  and 
Consular  reports — which  statistics,  as  a  rule,  are 
based  on  close  observation  and  logical  deduction  from 
solid  facts,  and  also  to  statistics  furnished  by  semi- 
public  organizations,  such  as  Chambers  of  Commerce, 
Boards    of    Trade,    Merchants    and    Manufacturers 


Associations,  etc. — the  latter  statistics  sometimes 
based,  partly  on  facts  and  partly  on  local  civic  pride 
and  hopeful  discounting  of  futures.  All  these  sta- 
tistics would  have  furnished  a  wealth  of  information 
which,  once  classified  and  submitted  to  the  acid  test 
of  common  logic,  would,  without  much  travail,  give 
birth  to  a  reasonable  forecast  as  to  the  future  develop- 
ment of  the  relations  under  consideration. 

But  bold  indeed  would  be  the  man  who,  in  the 
present  state  of  the  world's  political  conscience,  would 
still  believe  these  material  facts  and  considerations  to 
be  the  only  determining  factors  of  the  situation.  The 
psychological  factor  must  enter  very  largely  into  the 
situation  as  soon  as  peace  is  declared  and  conditions 
have  been  steadied.  He  who  questions  this  has  only 
to  read  of  the  avowed  determination  of  the  British 
Seamen's  Union,  so  forcibly  expressed  by  J.  Have- 
lock  Wilson,  its  President,  to  boycott,  to  the  fullest 
extent,  German  goods  in  British  ships,  not  to  allow 
any  British  ship  to  carry  these  goods  in  any  shape  or 
form,  nor  to  allow  any  German  ship  in  British 
harbors. 

Truly,  after  the  political  peace  has  been  con- 
cluded and  signed  by  statesmen  and  ratified  by  the 
duly  constituted  Governments,  the  People's  World 
Conscience  will  speak  out  loud  and  persistently. 
Future  trade  will  depend  largely  on  this  people's 
voice.  The  answer  which  will  be  demanded  will  be 
an  answer  to  the  persistent  and  pertinent  question: 
How  did  you  stand  as  a  whole  during  the  struggle, 
and  where  and  how  do  you  stand  now? 

For,  even  after  the  present  conflict  has  been  set>> 
tied  to  the  satisfaction  of  the  Governments  involved. 


insofar  as  such  a  struggle  and  all  its  crimes  and  hor- 
rors can  ever  be  satisfactorily  settled,  the  people  of 
each  country  as  a  unit  will  very  largely  disregard 
even  necessary  official  pronunciamentos,  and  will  de- 
mand an  accounting  of  the  stewardship  of  the  rights 
and  duties  involved,  as  well  of  belligerents  as  of 
neutrals,  during  the  period  of  the  struggle.  This 
accounting  will  not  be  tested  merely  by  the  rules  of 
International  Law,  or  finely  spun  international 
sophistries.  It  must  be  such  an  accounting  as  twelve 
good  men  and  true,  sitting  on  a  jury,  could  unre- 
servedly accept  as  being  consonant,  not  only  with  the 
rules  of  law,  but  with  the  edicts  of  equity  and  good 
conscience. 

For  public  opinion  will  act  very  largely  as  a  jury 
on  future  trade  relations,  and  after  the  conclusion  of 
the  common  peace,  that  jury  will  demand  that  the 
nations  come  into  Court  with  clean  hands. 

That  the  public  opinion  prevailing  in  the  United 
States  of  America  will  have  a  decided  say  in  this 
high  court  is  a  matter  of  course.  Furthermore,  that 
the  world  at  large  as  far  as  international  trade  rela- 
tions is  concerned,  is  going  to  be  a  pronounced  Allied 
world — if  I  may  use  this  word — is  equally  a  fore- 
gone conclusion. 

The  question  arises  at  the  present  time — What 
will  American  public  opinion  be  as  to  Holland's 
actions  during  the  war  waged  at  its  very  frontiers? 
Basing  my  opinion  on  an  intimate  knowledge  of  the 
American  people,  a  knowledge  gained  by  thirty  years 
of  residence  and  twenty-five  years  of  citizenship,  a 
knowledge  gained  by  practicing  for  years  in  the  State 
and  Federal  Courts,  and  by  taking  part  in  American 


business  enterprises — knowing,  therefore,  the  fair- 
ness, justness  and  sense  of  honor  of  the  American 
people — I  do  not  hesitate  to  say  that  once  all  facts  are 
known  and  the  tremendous  difficulties  under  which  the 
Netherlands  and  its  Colonies  have  labored,  are  under- 
stood, the  American  verdict  will  be:  "Well  done. 
Sister!  You,  like  us,  have  eaten  sorrow  out  of  a  large 
spoon  during  this  cataclysm.  We  know  that  you  have 
labored  under  difficulties  which  have  seldom  fallen  to 
the  lot  of  a  small  but  proud  people.  We  under- 
stand that  anxieties  have  beset  you,  dangers  threat- 
ened, and  shadows  overcast  you  during  all  these 
years — yes,  even  during  the  first  two  years  of  the 
struggle  when  we  ourselves  were  entirely  carefree 
and  safe.  We  understand  that  during  all  these  years 
there  was  a  scarcity  of  food,  even  hunger  in  your 
country;  that  fuel  supplies  were  exhausted  during 
your  long  winters;  that  you  have  constantly  kept  an 
army  under  the  colors,  an  army  even  greater  in  pro- 
portion to  your  population  than  our  own  army  at  the 
height  of  its  development.  You  shared  your  abund- 
ance, then  your  poverty,  with  hundreds  of  thousands 
of  refugees.  Your  people  stood  the  hardest  test  in  the 
world — that  is,  you  stood  armed  and  marking  time, 
without  being  able  to  go  into  action,  but  ready  to 
shed  your  last  drop  of  blood  for  your  dearly  bought 
independence.  Hemmed  in  by  belligerents,  you  felt 
that  the  terrific  blow  might  fall  at  any  time,  but 
through  it  all  you  maintained  with  sternness — yes, 
with  dignity — your  neutrality  and  independence.  You 
did  even-handed  justice  to  thousands  within  and  with- 
out your  borders.     Therefore  you  are  welcome  as 

10 


friends  and  true  men  at  the  common  table  of  Inter- 
national Intercourse." 

It  is  not  within  the  scope  of  my  present  article 
to  write  a  justification  of  the  conduct  of  the  Nether- 
lands. It  may  truly  be  said  that  its  conduct  needs  no 
justification.  When  the  history  of  this  war  is  writ- 
ten on  broad,  international  and  philosophical  lines, 
the  historian  will  once  more  point,  as  historians 
have  so  often  pointed  in  the  past,  to  the  fact  that 
liberty  and  righteousness  often  find  their  strongest 
champions  in  small  countries,  and  that  it  is  not 
geographical  size  but  strength  of  national  character 
which  fixes  a  country's  place  in  the  family  of  nations. 
And  the  historian  will  prove  this  contention  by  citing 
the  example  of  the  Netherlands.  American  public 
opinion  will  do  justice  to  the  Netherlands  and  its 
people  for  two  reasons:  Because  this  public  opinion 
is  American,  and  therefore  Fair,  and  because  the 
Netherlands  people  deserve  it. 

Do  many  of  our  American  citizens  realize  through 
what  agonizing  days  and  nights  the  Queen  of  the 
Netherlands  and  her  Government  have  passed?  And 
what  anxieties  must  have  beset  the  venerable  and 
learned  Premier  Cort  van  der  Linden?  Do  they 
realize  that  the  young  girl  whom  they  took  to  their 
national  heart  when  she  mounted  the  throne,  has 
borne  years  of  untold  anxiety  with  real  regal  dignity, 
as  only  a  good  and  noble  woman  knows  how?  And 
do  many  realize  that  the  former  Minister  and  Envoy 
of  this  Queen,  John  Loudon  (himself  married  to  a 
most  estimable  American  lady),  he  who  was  loved 
so  much  during  his  years  in  Washington,  was  during 
these  difficult  years  the  Queen's  Foreign   Minister, 

11 


and  that  history  is  bound  to  point  to  him  as  one 
of  the  great  neutral  statesmen  who  performed  an 
almost  impossible  task  in  a  most  successful,  yes,  in 
a  most  lofty  way? 

The  only  reason  these  statements  are  made  here 
is  because  I  firmly  believe  that  it  is  impossible  to  give 
even  an  approximate  forecast  of  the  trade  relations 
between  two  countries,  unless  you  first  grasp  the 
psychological  side  of  the  question. 

Those  who  are  versed  in  the  matter  must  many 
times  have  been  deeply  disappointed  at  the  blindness 
of  the  critics  of  the  Netherlands.  No  fair-minded 
person  will  deny  for  a  moment  that  it  is  not  only  the 
right  but  the  duty  of  the  United  States  to  prevent  a 
part  of  its  stores  of  supplies  from  going  to  a  neutral 
country  if  there  is  any  possibility  that  these  supplies, 
either  in  kind  or  in  modified  form,  may  cross  that 
neutral  country's  boundaries  into  the  country  of  the 
enemy.  And  no  fair-minded  person  will  deny  that 
even  if  these  supplies  remain  in  toto  in  the  neutral 
and  friendly  country,  but  their  importation  makes 
other  supplies  available  for  export  to  the  enemy  coun- 
try, the  Government's  first  duty  to  its  citizens  is  to 
prevent  the  creation  of  such  a  condition.  And  no 
fair-minded  person  will  deny  that  it  is  the  absolute 
right  of  any  country  to  keep  all  its  supplies,  either  at 
home  or  reserved  for  its  Allies,  simply  because  it 
needs  those  supplies  for  its  own  or  allied  purposes. 

It  would  therefore  be  a  violation  of  common 
sense  for  the  historian  to  take  exception  to  the  actions 
of  the  United  States,  actions  predicated  on  the  above 
rules.  But  how  foolish,  yes,  how  deplorable  and  un- 
dignified, was  the  outburst  of  wrath  in  this  country, 

12 


voiced  generally  in  the  public  press,  shortly  after  the 
entry  of  the  United  States  into  war,  when  it  was 
ascertained  that  the  Netherlands  did  export  some  of 
its  surplus  foodstuffs  to  Germany.  Certainly,  all  fair- 
minded  men  must  object  to  the  measurement  by  two 
different  standards  —  one  standard  for  one's  own 
actions  and  another  for  the  actions  of  one's  neigh- 
bors. The  Netherlands  was  doing  as  a  neutral  sim- 
ply, and  with  far  more  justification  in  necessity,  what 
the  Republic  of  the  United  States  had  done  likewise 
as  a  neutral. 

The  principle  of  International  Law,  giving  neu- 
trals the  right  to  trade  with  any  belligerent  who  can 
get  at  the  neutral  market,  was  vigorously  and  rightly 
defended  in  this  country.  It  has  become  justly  a  part 
of  the  principles  and  doctrines  as  laid  down  by  Amer- 
ican declarations.  When  before  the  entry  of  this 
Republic  into  the  war,  the  German  Government,  yes, 
even  American  citizens  sympathizing  with  the  German 
course,  protested  against  the  exportation  of  large  war 
supplies  from  the  United  States  to  Allied  countries,  it 
was  firmly  stated  that  so  important  a  rule  of  Inter- 
national Law  could  not  be  changed  during  the  struggle, 
for  if  this  were  done,  it  would  be  tantamount  to 
depriving  one  of  the  belligerents  of  a  vested  right,  the 
exercise  of  which  was  made  possible  by  its  supremacy 
of  the  seas.  If  Germany  could  not  get  to  our  mar- 
kets, it  was  not  the  fault  of  this  Republic,  but  Ger- 
man's misfortune.  Finally  when  Germany,  for  the 
purpose  of  trying  to  put  a  stop  to  the  trade  of  this 
country  with  the  Allies,  used  its  murderous  weapon 
of  the  submarine,  the  United  States  in  vindication  of 

13 


the  above-mentioned  International  principle,  went  to 
war. 

Then  why  this  indignation?  The  Netherlands 
did  not  trade  for  profit  in  ammunitions,  guns  or  rifles. 
She  traded  simply  out  of  sheer  necessity.  She  traded 
foodstuffs,  in  order  to  obtain  absolute  necessaries  of 
life.  For  instance  coal,  which  she  could  only  draw 
from  Germany  and  which  was  necessary  for  the  na- 
tional existence,  as  otherwise  the  people  would  freeze 
to  death.  She  therefore  followed  only  in  a  mild  form 
the  same  international  rights  which  were  so  thor- 
oughly and  vigorously  protected  in  the  case  of  the 
United  States  of  America. 

While  many  objections  were  made  in  the  Amer- 
ican press  to  the  Hollanders  exporting  cheese  and  but- 
ter to  Germany,  the  fact  was  hardly  ever  mentioned 
that  for  every  hundred  pounds  of  animal  fat  so 
exported  from  the  Mother  Country  to  Germany,  a  ton 
of  vegetable  fats,  such  as  copra,  cocoanut  and  peanut 
oils,  was  imported  by  Holland  merchants  from  the 
East  Indian  Colonies  into  the  United  States.  If  the 
cheese  which  the  merchants  of  the  Mother  Country 
imported  into  Germany  was  not  used  for  direct 
human  consumption,  it  was  only  used  for  making 
combs  and  buttons,  etc.,  while  the  vegetable  fats  im- 
ported from  the  Netherlands  East  Indies,  if  not  used 
directly  for  human  consumption,  could  be  made  avail- 
able for  such  uses  as  the  American  manufacturers  of 
war  material  are  thoroughly  acquainted  with.  But 
still,  in  the  eyes  of  many  American  editors,  how 
thoroughly  anti-Ally  those  Holland  traders  were  when 
they  exported  this  surplus  cheese  to  Germany! 

Whenever,  during  the  last  couple  of  years,  such  a 

14 


question  arose  the  query  was  generally  made:  But 
what  is  the  majority  of  the  Dutch  people  anyhow — 
pro- Ally  or  pro-German? 

Granting  fully  that  during  this  world  struggle 
no  intelligent  person,  no  matter  what  his  station  in 
life  may  be,  could  be  sincere  and  claim  to  be  strictly 
neutral  in  sympathies,  it  did  not  seem  to  occur  to 
many  Americans — themselves  the  most  patriotic  peo- 
ple in  the  world — that  the  overwhelming  majority  of 
the  Netherlanders  were  staunchly  pro-Holland  before 
anything  else. 

It  was  not  only  vegetable  fats  that  the  Nether- 
lands Colonies  supplied  to  the  American  markets. 
Tons  of  rubber,  tin,  sisal,  quinine  and  other  very 
important  supplies  were  brought  from  the  Nether- 
lands Colonies  to  the  ports  of  America.  To  give  only 
one  instance,  the  imports  through  the  customs  district 
of  San  Francisco  from  the  Netherlands  East  Indies 
show  the  total  value  in  1915  of  $50,000  and  in  1917 
of  $43,000,000. 

Some  time  the  historian,  unbiased  by  too  much 
national  zeal,  will  also  write  of  the  seizures  of  the 
Holland  ships  in  Allied  ports.  Possibly  he  will  be 
puzzled  how  to  reconcile  the  evident  facts  with  the 
principles  of  International  Law.  He  will  delve  into 
the  records  of  the  conferences  held  in  Washington 
and  London  (it  was  at  London  that  the  decision  was 
finally  taken).  Having  more  leisure  than  the  states- 
men of  the  present  day  who  are  beset  with  anxieties 
and  tremendous  responsibilities,  he  may  reflect  that 
the  law  of  Angary  is  after  all  only  the  weak  inter- 
national sister  of  its  older  and  better  established  rela- 
tive in  Municipal  Law,  known  as  the  law  of  eminent 

15 


domain.  He  will  reflect  that  both  these  laws  rest  on 
the  underlying  principle  of  absolute  necessity.  That 
the  necessity  must  be  established  first  by  declaration. 
That  the  declaration  must  be  supported  by  facts. 
That  the  necessity  cannot  be  established  if  this  im- 
portant element  is  lacking,  namely,  that  the  seizing 
or  appropriating  party  has  no  property  of  its  own 
with  which  to  satisfy  the  demand.  He  also  may 
reflect  that  this  requirement  of  necessity  is  not  a 
blanket  requirement,  but  a  specific  requirement  which 
must  attach  to  individual  cases.  And  then  this  his- 
torian may  wonder  how  ships  in  the  Pacific  Oriental 
trade,  flying  national  or  Allied  flags,  remained  undis- 
turbed. Especially  when  he  remembers  that  of  the 
six  lines  which  were  serving  this  trade  five  were 
under  Allied  flags  and  remained  free  from  seizure, 
which  the  ships  of  the  only  line  under  a  friendly  neu- 
tral flag  were  "Angarized,"  I  think  he  will  conclude 
that  the  indignation  and  resentment  which  flared  up 
in  the  Netherlands  after  the  seizure  of  these  Nether- 
lands ships,  especially  the  ships  in  the  Pacific-Oriental 
trade,  was  after  all  not  a  sign  of  anti-Ally  sentiment, 
but  a  protest  against  what  Netherlands  public  opinion 
considered  an  unwarranted  wrong. 

Some  time,  too,  the  historian  may  be  able  to 
view  with  an  unbiased  eye  the  many  difficulties  which 
beset  the  negotiators  who  endeavored  to  harmonize 
the  necessity  of  Netherlands  shipping,  the  vital  ne- 
cessity of  its  Colonies,  with  the  demand  of  the  Allies. 
Through  the  shipping  interest  of  the  Netherlands 
flows  the  very  heart  blood  of  that  country.  The 
Netherlands  ships  connect  the  Mother  Country  with 
her  colonies,  and  the  Colonies  with  the  outside  world* 

16 


In  those  Colonies  a  handful  of  Europeans,  through 
their  wise  and  beneficent  Government,  are  able  to  pre- 
serve order,  peace  and  content  among  fifty  million 
natives.  But  it  is  absolutely  necessary  for  the  very 
existence  of  these  island  Colonies,  that  communication 
with  the  outside  world  be  undisturbed.  If  these  ships 
are  destroyed  their  payment  in  money  would  recom- 
pense the  individual  owners,  but  would  give  no  relief 
to  the  crying  National  want.  Neither  Denmark, 
Sweden,  Norway  nor  Spain  had  such  a  potent  problem 
staring  her  in  the  face.  Taking  this  into  considera- 
tion, the  historian  will  think  about  the  exasperating 
delays  and  vexations  caused  by  overlapping  authori- 
ties, misunderstandings,  inability  to  catch  the  other 
party's  standpoint,  and  other  complications,  and  he 
may  then  be  able  to  present  the  case  to  the  public. 
And  the  public,  having  regained  its  balance,  will,  I  am 
sure,  judge  justly  and  understandingly. 

Surely  it  will  then  be  understood  that  the  appli- 
cation of  the  drastic  right  of  Angary  is  the  application 
of  a  strictly  utilitarian  doctrine  in  International  Law, 
and  that  the  application  of  such  a  utilitarian  doctrine 
by  a  mighty  nation  which  has  been  looked  up  to  as 
the  exponent  of  idealism  in  international  relations, 
naturally  caused  a  severe  shock  to  the  sensibilities  of 
a  small  but  proud  and  liberty-loving  people. 

At  present  the  American  public  is  somewhat 
puzzled  why  their  government  arrived  at  a  satisfac- 
tory understanding  with  the  Governments  of  such 
neutral  countries  as  Norway,  Denmark,  Switzerland 
and  Spain,  while  the  negotiations  with  the  Nether- 
lands Government  dragged  without  arriving,  in  a  rea- 
sonable time,  at  a  satisfactory  economic  settlement. 

17 


The  public,  rightly  knowing  that  its  Government  de- 
sired to  be,  above  all,  just,  jumps  at  the  conclusion 
that  the  questions  involved  were  identical.  It  would 
be  impossible  to  enter  into  a  discussion  of  this  ques- 
tion here,  even  in  a  cursory  way.  I  am  not  writing  of 
international  politics.  Suffice  it  to  say  that  it  would 
be  well  to  withhold  any  judgment  on  this  matter,  until 
all  the  conditions  are  accurately  known. 

The  political,  as  well  as  the  commercial  friend- 
ship of  the  United  States  of  America  with  the  Nether- 
lands, fortunately  rests  not  only  on  a  broad  historical 
basis,  but  on  a  thorough  understanding,  born  from  the 
fact  that  both  peoples  have  almost  identical  political 
aspirations  and  ideals. 

I  must  confess  that  it  has  often  impressed  me 
painfully,  that  during  the  shipping  difficulties,  ref- 
erences have  been  made  by  well  meaning  but  over- 
zealous  Hollanders  to  the  historical  political  duty 
which  the  people  of  the  United  States  are  presumed 
to  owe  to  the  people  of  the  Netherlands.  I  have  al- 
ways considered  these  assertions  in  very  doubtful 
taste  and  lacking  that  delicacy  which  is  so  necessary 
to  foster  amity  amongst  nations.  Some  Hollanders 
have  considered  it  necessary  to  remind  the  Govern- 
ment of  this  great  Republic  what  old  Holland  did  for 
her  during  her  infancy.  While  every  historian  readily 
agrees  as  to  this  debt  of  the  past,  I  believe  that  every 
Netherlander  who  truly  loves  liberty,  is  convinced 
that  the  United  States  of  America  is  at  the  present 
time  repaying  it  liberally,  though  indirectly.  While  it 
may  be  an  everlasting  cause  for  satisfaction  for 
American  citizens  of  Netherlands  descent  to  know 
that  the  red,  white  and  blue  are  the  National  colors 

18 


of  both  countries,  that  the  seven  stripes  in  Old  Glory 
are  a  fitting  emblem  of  the  seven  provinces  of  the  Old 
Republic  of  the  United  Netherlands,  the  birthplace 
of  so  many  American  ideals,  still  it  is  more  to  the 
point  to  know  that  the  same  intense  love  of  personal 
and  political  liberty  which  animated  the  inhabitants 
of  the  Lowlands  centuries  ago,  is  to-day  the  guiding 
star  of  the  peoples  of  both  countries,  and  that  the 
same  ideals  which  made  it  possible  for  Benjamin 
Franklin  to  say  of  the  Netherlands,  "In  love  of  lib- 
erty and  in  the  defense  of  it,  she  has  been  our  exam- 
ple," and  for  Thorold  Rogers  to  say,  "To  the  true 
lover  of  liberty,  Holland  is  the  Holy  Land  of  modem 
Europe  and  she  must  be  held  sacred,"  are  still  flour- 
ishing with  undiminished  vigor. 

But,  as  I  said  before,  I  consider  it  of  doubtful 
propriety,  especially  at  the  present  time,  to  harp  on 
this  historical  indebtedness,  and  I  would  rather  quote 
what  was  said  by  the  Belgian,  Gustav  Jaspaers,  in 
his  recent  publication,  "The  Belgians  in  Holland  from 
1914  to  1917": 

"In  1914,  Holland  could,  for  motives  of  personal 
safety,  have  closed  her  frontier  to  the  flood  of  Belgian 
refugees  fleeing  from  fire  and  sword.  Certainly  it 
would  have  been  an  act  of  egoism,  but  no  one  could 
have  found  fault  with  it.  We  have  seen  how  the 
Government  and  the  people  of  the  Netherlands  chose 
a  finer  way,  and  how  they  welcomed  us.  Afterwards 
they  could  have  sent  back  the  destitute  among  us  to 
Belgium,  or  at  all  events  not  troubled  about  them. 
They  did  nothing  of  the  kind.  To  the  contrary,  and 
in  spite  of  the  fact  that  it  was  faced  by  exceptionally 
difficult  problems,  strategic  and  economic,  the  Govern- 


19 


ment  did  not  for  one  moment  abandon  the  Belgians 
to  their  sad  fate.  By  this  humane  policy  the  Nether- 
lands compelled  the  admiration  of  the  entire  world, 
which  applauded  the  action  so  magnanimous  and  com- 
passionate of  a  little  country  that  interpreted  so 
generously  the  high  sentiment  of  solidity.  Holland 
has  not  been  unfaithful  to  her  past.  As  always  she 
has  remained  the  hospitable  country  for  the  unfor- 
tunate, for  the  persecuted,  for  the  exiles.  The  Bel- 
gians who  were  the  first  to  benefit  by  this  hospitality, 
will  certainly  be  the  last  to  forget." 

And  Mme.  de  Nimal-Berryer,  sister  of  the  Bel- 
gian Minister  Berryer,  wrote  as  follows : 

"What,  however,  did  surprise  and  astonish  me 
beyond  words,  was  the  admirable  generosity  of  the 
inhabitants  of  this  country,  this  traditional  and  quite 
natural  charity,  so  simple,  frank,  general  and  spon- 
taneous, flowing  like  a  stream.''  And  again,  "The 
generous,  simple,  hospitable  and  essentially  paternal 
welcome  always  reserved  in  this  country  for  foreign 
exiles,  constitutes  one  of  the  most  touching  mani- 
festations of  this  spirit  of  mutual  help  and  assistance 
rooted  in  the  heart  of  all  the  Netherlanders.'' 

It  is  significant  that  the  same  charge  which  has 
often  been  made  erroneously  against  the  people  of 
the  United  States  (the  most  idealistic  people  in  the 
world),  the  charge  of  "dollar  hunting'' — ^has  often 
been  leveled  at  the  people  of  the  Netherlands.  We 
find  the  same  Mme.  de  Nimal  writing  as  follows : 

"Our  exile  has  enabled  us  to  become  better 
acquainted  with  Holland  and  the  Dutch  whom  we  did 
not  know  any  better  than  the  Dutch  knew  Belgium 
and  the  Belgians.    With  us  the  Dutch  had  the  reputa- 

20 


tion  of  being  solely  absorbed  in  the  idea  of  making 
money.  Now  we  know  their  purse,  like  their  heart, 
was  opened  very  wide  for  the  glorious  misery  of  the 
Belgians.  The  disinterestedness  of  our  hosts  is,  more- 
over, so  lofty  and  so  proud  that  they  will  permit 
us  only  to  manifest  our  gratitude  to  all  in  general 
rather  than  to  each  in  particular  and  to  tender  our 
thanks  to  their  country  for  the  material  help  and 
moral  comfort  that  it  gave  us  in  the  most  terrible  trial 
humanity  has  ever  known." 

Again  Mr.  Jaspaers  says: 

"At  any  moment  Holland,  like  Belgium,  might  be 
involved,  her  fields  devastated,  her  historical  and 
artistic  treasures  pillaged  and  burned.  Our  hosts  in 
their  generosity  thought  less  of  the  dangers  threaten- 
ing themselves,  than  of  their  self-imposed  duty  of 
alleviating  our  sufferings." 

And  again :  ''Besides,  have  those  who  reproached 
Holland  for  not  having  thrown  herself  head  foremost 
into  the  melee  asked  themselves  what  would  have  then 
become  of  those  thousands  of  Belgians  who,  having 
lost  everything  in  Belgium,  have  been  lucky  in  finding 
here  a  shelter,  which,  if  it  does  not  give  them  all 
the  comforts  of  the  ruined  hearth,  gives  them  at  any 
rate,  precious  peace?" 

Between  700,000  and  1,000,000  Belgian  refugees 
entered  Holland.  That  was  one-sixth  of  Holland's 
own  population.  It  was  as  though  15,000,000  desti- 
tute foreigners  invaded  the  United  States.  And  still 
this  comparison  is  not  just,  because  Holland  is  a  close- 
ly populated  country,  room  is  far  scarcer,  employ- 
ment is  more  difficult  to  obtain  and  the  per  capita 
wealth  is  considerably  less  than  in  the  United  States. 

21 


But  all  these  matters  can  be  left  for  the  future 
historians.  American  people  at  the  present  time,  I 
am  sure,  know  enough  of  the  tremendous  stress  and 
difficulties  under  which  the  Netherlands,  the  Govern- 
ment and  her  Queen  have  labored,  to  sense,  almost 
by  intuition,  the  true  state  of  affairs  and  the  true 
attitude  of  the  Netherlands.  And  so  American  pub- 
lic opinion  will  invite  this  brave  and  independent  peo- 
ple to  an  honored  place  at  the  common  table  of  inter- 
national commerce  and  intercourse.  Therefore  it  may 
be  said  that  the  psychological  side  of  the  question 
does  not  seem  to  offer  any  obstacle,  but  only  encourage- 
ment. Broadly  speaking,  for  that  reason  alone,  the 
trade  relations  of  the  United  States  with  the  Nether- 
lands and  its  Colonies,  have  a  bright  future.  In  the 
next  article  I  shall  sketch  in  a  more  detailed  way  the 
material  side  of  this  question. 


22 


Chapter  II. 

Trade  with  the  Mother  Country 

In  the  previous  article,  I  stated  that  the  future 
Commercial  World  Empire  will  be  largely  an  Allied 
Empire,  and  that  the  psychological  problem  will  be 
a  large  factor  in  the  determination  of  world  relations 
for  years  to  come. 

The  events  which  have  developed  not  only  within 
the  last  few  years,  but  within  the  last  couple  of 
months,  and  are  developing  now,  must  be  kept  in  mind 
in  order  to  visualize  the  future  trade  relations  of  the 
different  countries.  For  these  events  will  have  a  de- 
termining effect  on  the  new  International  Trade 
Conscience. 

It  may  be  a  painful  shock  to  realize,  as  many  are 
bound  to  realize,  that  the  recent  "peace  celebrations" 
were  rather  premature,  and  bold  indeed  would  be  the 
man  who  would  undertake  to  prophesy  when  the 
world's  trade  will  resume  its  normal  course. 

Revolt,  Bolshevikeing,  anarchy,  etc.,  let  loose  in 
one  country,  very  often  spread  like  epidemics  to  neigh- 
boring countries.  So  a  good  deal  of  blood  may  yet  be 
shed  in  Europe,  even  in  the  neutral  countries  adjoin- 
ing the  belligerents,  before  world  peace  is  finally 
restored.  But  the  time  is  bound  to  come,  sooner  or 
later,  when  the  industrial  and  trading  people  of  the 
world  will  have  recovered  their  poise,  and  normal 
relations  can  be  resumed. 

The  future  Netherlands  trade  is  bound  to  be 
divided — as  in  the  past — into  three  main  branches : 

23 


First:  The  trade  with  the  Mother  Country  in 
Europe,  the  Netherlands  proper. 

Second:  The  trade  with  the  Netherlands  East 
India  Colonies  in  Asia. 

Third:  The  trade  with  the  Netherlands  West 
Indies. 

Several  factors,  both  physical  and  psychological, 
indicate  that  the  trade  mentioned  under  subdivision 
two  is  destined  to  see  the  greatest  development,  to 
overshadow  in  importance  the  trade  with  the  Mother 
Country,  while  the  trade  with  the  Netherlands  West 
Indies,  on  account  of  their  limited  area,  is  destined  to 
be  a  minor  factor. 

From  the  very  nature  of  her  geographical  situa- 
tion, Holland's  trade  has  been  partly  international- 
domestic  and  partly  international-transito,  if  I  may 
use  these  words. 

When  conditions  become  normal  trade  between 
the  United  States  and  the  Netherlands  proper — inter- 
national-domestic trade — will  not  be  subject  to  great 
disturbances,  either  by  contraction  or  expansion. 

The  Mother  Country's  population  is  about  six 
and  a  half  millions.  While  the  country  boasts  of  some 
very  important  industries,  still  the  Dutch  people  are 
essentially  a  trading,  agricultural  and  seafaring  na- 
tion and  not  primarily  a  manufacturing  nation,  as 
Belgium  was.  The  country  raises  a  good  deal  of  what 
it  needs  for  the  immediate  consumption  of  its  popula- 
tion and  parts  of  its  needs  for  war  material  are  sup- 
plied from  its  own  Colonies.  Therefore  we  cannot 
expect  important  fluctuations  in  its  trade  balances 
once  they  are  established  on  a  sound  economic  base. 

But,  during  the  war,  the  Netherlands  having  been 

24 


compelled  to  depend  largely  on  its  own  industries,  has 
developed  new  manufacturing  resources  and  possi- 
bilities formerly  unexpected  or  at  least  dormant. 
Sheer  necessity  has  taught  her  and  her  people  that 
a  great  many  manufacturing  resources  existed  in  the 
country  which  were  unemployed  before  the  war. 

The  question  naturally  arises:  How  will  these 
products  of  the  Netherlands  industries  be  welcome  in 
the  American  market,  assuming  they  can  be  laid  down 
at  attractive  prices? 

The  answer  involves  the  psychological  phase 
formerly  referred  to. 

It  is  safe  to  assume  that  for  a  great  many  years 
to  come,  articles  of  German  manufacture  will  be 
unwelcome  in  the  extensive  markets  of  the  United 
States,  and  it  is  also  safe  to  assume  that  the  German 
manufacturing  interests  will  endeavor  to  import  these 
articles,  making  it  appear  that  they  were  manufac- 
tured in  friendly  countries.  This  can  be  done  in 
several  ways.  Small  parts  of  a  complicated  article 
may  be  manufactured  in  Germany,  then  imported  as 
such  to  the  Netherlands  and  assembled  as  a  Nether- 
lands product.  On  the  other  hand,  we  must  remember 
that  several  large  American  importers  had  and  pre- 
sumably still  have,  important  manufacturing  interests 
in  Germany,  and  that  formerly  their  products  were 
shipped  through  the  port  of  Rotterdam,  mainly  to 
the  port  of  New  York.  How  can  these  unwelcome 
goods  be  recognized  from  those  which  will  be  welcome; 
in  other  words,  how  can  the  commercial  goats  be 
separated  from  the  sheep?  This  will  depend  very 
largely  on  the  good  faith  of  Netherlands  manufac- 
turers.   They  must  not  mark  goods  as  being  of  purely 

25 


Netherlands  manufacture,  if  these  goods  are  manu- 
factured by  a  Dutch  corporation  which  is  Dutch  in 
name  only,  but  really  under  alien  control. 

Several  agencies  are  already  in  existence  in  the 
Netherlands  which  by  extending  their  activities  could 
materially  assist  in  commanding  that  confidence  in 
the  integrity  of  the  Dutch  trade  marks  so  necessary 
to  command  the  respect  of  the  American  buying  pub- 
lic. There  is  in  the  Netherlands  a  society  known  as 
"Nederlandsch  Fabrikaat.''  This  society  has  on  its 
membership  role  only  those  who  manufacture  and 
offer  for  sale  purely  Dutch  articles.  It  was  organ- 
ized to  stimulate  home  industry.  Its  main  office  is 
at  The  Hague,  but  it  has  branches  in  the  principal 
manufacturing  cities  of  the  Netherlands.  It  has 
adopted  an  official  brand  or  trade  mark  with  which 
goods  of  purely  Dutch  manufacture  are  stamped  or 
labeled,  and  while  the  original  idea  was  to  stimulate 
the  purchase  of  Netherlands  articles  in  the  Mother 
Country,  very  likely  its  activities  could  be  extended 
to  export  trade,  to  the  great  benefit  of  Netherlands 
industries.  A  rigid  inspection  exercised  by  such  a 
semi-official  body,  and  if  necessary,  legal  enactments 
to  punish  the  wrongful  use  of  its  identification  mark, 
would  inspire  that  confidence  in  the  origin  of  the  im- 
ported articles  without  which  the  American  importer 
will  be  unwilling  to  do  business. 

The  success  or  failure  of  Netherlands  articles  in 
the  American  market  will,  in  my  opinion,  largely 
depend  on  the  extent  to  which  a  similar  control  is 
exercised  over  all  manufactured  articles  offered  for 
sale  to  American  wholesalers. 

There  is  no  reason  to  believe  that  the  spirit  which 

2^ 


prompted  several  toy  houses* in  this  country  to  refuse 
a  share  of  the  consignment  of  Christmas  toys  and 
china  which  arrived  recently  on  a  steamer  of  the 
Holland  American  Line  and  which  were  German  goods 
shipped  into  Holland  and  bought  and  paid  for  long 
before  the  outbreak  of  the  war,  will  in  any  way  be 
modified  after  the  conclusion  of  the  peace.  Rather, 
it  will  be  intensified.  The  Netherlands  merchants 
may  also  see  the  advantage  of  centralizing  both  im- 
ports and  exports,  the  first  through  the  now  famous 
N.  0.  T.  (Netherlands  Overseas  Trust  Company)  and 
the  latter  through  the  equally  well  known  N.  U.  M. 
(Netherlands  Uitvoer  Maatschappy  [Netherlands  Ex- 
port Society]). 

The  Netherlands  Government  may  deem  it  ad- 
visable to  give  these  organizations  semi-public  powers. 
While  these  centralizations  may  very  beneficially 
affect  the  control  above  mentioned,  incidentally  they 
ought  to  assist  considerably  in  the  stabilization  of  the 
rates  of  exchange,  something  which  will  assist  in 
keeping  business  on  a  sound  basis. 

Statistics  as  to  the  imports  and  exports  between 
the  two  countries  are  confusing  unless  one  keeps  in 
mind  the  International-transito  commerce  heretofore 
referred  to. 

For  instance,  the  report  of  the  American  Consul 
General  at  Rotterdam  gives  us  these  figures  for  total 
exports  to  the  United  States  from  the  Netherlands : 

1914   $37,363,000 

1917 24,870,502 

while  the  official  publication  of  the  Department  of 
Commerce  and  Navigation  of  the  United  States  for 

27 


1917  gives  these  total  exports  to   the   Netherlands 
from  the  United  States : 

1914   $112,215,673 

1917  100,082,108 

The  statistics  for  1918  (ending  June  30)  are  not 
yet  at  hand,  but  it  is  safe  to  assume  that  1918  will  be 
very  much  less  favorable,  that  is  to  say,  that  both  the 
imports  to  and  exports  from  the  United  States,  but 
especially  the  latter,  will  show  a  very  marked  decrease. 

In  1917,  more  than  one-half  of  the  total  exports 
passed  through  the  New  York  Custom  District  ($65,- 
000,000).  Those  through  the  Maryland  District  were 
about  $20,000,000.  Through  the  Philadelphia  Dis- 
trict, $8,000,000.  Through  the  New  Orleans  District, 
$9,000,000.  The  balance  passed  through  the  various 
other  districts.  This  shows  conclusively  the  over- 
whelming importance  of  New  York  and  vicinity  in 
this  Home  trade.  The  figures  for  the  import  trade 
from  the  Netherlands  strengthen  this  position,  for  of 
a  total  value  of  $31,842,144,  New  York  alone  stands 
credited  with  almost  $28,000,000. 

The  same  reasons  which  assure  New  York's 
permanent  supremacy  in  export  business  with  the 
Netherlands  proper,  will  make  the  Pacific  Coast  Dis- 
trict eventually  supreme  in  the  Colonial  trade.  Com- 
merce follows  its  natural  geographical  channels,  vin- 
dicating the  principle  that  location  more  than  any 
other  factor  will  eventually  dominate  trade  relations. 

The  list  of  articles  imported  to  the  United  States 
contains  many  items ;  the  principal  are  tobacco,  plants 
and  bulbs,  hides  and  skins,  chemicals,  drugs  and  dyes, 
polished  diamonds,  pickled  herring,  cocoa  and  cocoa 

28 


butter,  paints  and  colors,  seeds,  spirits,  electric  lamps, 
glue  and  glue  size,  paper  stock  and  rags. 

The  list  of  articles  exported  from  the  United 
States  to  the  Netherlands  contains  such  items  as: 
Soda  ash,  vinegar,  drugs,  ores,  machinery,  automo- 
biles, wheat,  rye,  barley,  maize,  oats,  beans,  rice,  lum- 
ber, skins  and  hides,  cotton,  coal,  fertilizers,  iron  and 
steel,  oils,  cattle  feed,  meat,  copper,  lead,  starches, 
tobacco,  turpentine,  sulphur,  etc. 

That  the  trade  balance  between  the  United  States 
and  the  Netherlands  is  heavily  in  favor  of  the  former 
country  is  evident.  Partly  is  this  due  to  the  fact  that 
the  Netherlands  even  without  reshipment  would  from 
the  very  necessity  of  the  country  always  import  more 
from  the  United  States  than  export  to  this  country. 
But,  taking  this  natural  permanent  situation  into 
consideration,  still,  so  small  a  country  as  the  Nether- 
lands could  not  afford  such  a  large  trade  balance  in 
its  disfavor,  if  it  were  not  for  the  fact  that  a  great 
deal  of  these  goods  were  only  imported  in  transit  and 
were  ultimately  destined  to  other  countries,  principally 
South  Germany,  either  in  kind  or  in  a  modified  manu- 
factured form. 

I  say  South  Germany,  for  it  is  a  well  known  fact 
that  all  American  merchandise  destined  for  Prussia 
and  North  Germany  generally  was  imported  through 
Hamburg,  Bremen  and  other  North  Germany  ports, 
this  trade  rule  being  strongly  fostered  by  the  German 
Government  as  well  as  by  private  German  enterprise. 
That  the  transito  commerce  has  suffered  heavily 
is  also  shown  by  the  same  consular  report  which  states 
that  the  port  traffic  of  Rotterdam  declined  last  year 
to  one-tenth  of  what  it  was  in  1913,  and  that  the 

29 


number  of  Rhine  vessels  especially  had  greatly  de- 
creased. 

Will  these  conditions  be  restored  to  normal?  Will 
they  surpass  the  old  normal  figures? 

As  far  as  the  American  trade  factor  is  concerned, 
I  must  conclude  that  the  future  trade  relations  be- 
tween the  Netherlands  Mother  Country  and  the  United 
States  of  America  will  very  largely  depend  on  the 
measures  which  will  be  taken  in  the  Mother  Country 
to  stimulate  the  above-mentioned  confidence,  and  even 
if  this  is  accomplished,  much  must  be  left  to  semi- 
official and  personal  endeavor.  The  large  business 
which  has  been  transacted  between  the  port  of  New 
York  and  the  port  of  Rotterdam,  insofar  as  this  busi- 
ness was  based  on  the  transito  commerce  between  the 
United  States  of  America  and  the  German  Empire, 
will  be  subject  to  far  more  drastic  re-adjustment  than 
the  trade  proper  between  the  United  States  and  the 
Netherlands. 

That  the  Government  and  the  merchants  of  the 
Netherlands  are  awake  to  the  general  situation  is 
proved  by  the  activities  of  the  different  Chambers  of 
Commerce,  at  home  as  well  as  abroad,  and  also  by 
the  fact  that  under  the  patronage  of  the  Government 
a  special  commission  has  been  appointed  known  as 
"the  Netherlands  Commission  for  commercial  policies*' 
which  will  study  the  different  phases  of  the  law  and 
economic  problems,  and  advise  the  Government  and 
private  interests.  The  personnel  of  this  Commission 
gives  assurance  of  the  thoroughness  with  which  its 
work  will  be  done. 


30 


Chapter  III. 

Trade  with  the  Netherlands  East  Indies 

The  commerce  between  the  United  States  and  the 
Netherlands  East  Indies  offers  quite  a  different  prob- 
lem. Before  entering  into  the  discussion  of  these 
trade  relations  it  may  be  well  first  to  make  a  short 
statement  of  what  these  Colonies  really  are,  both  from 
a  geographical  and  historical  standpoint. 

The  whole  Malay  Archipelago,  also  known  as 
Insulindia,  is  a  possession  of  the  Netherlands,  with 
the  exception  of  the  northern  part  of  Borneo,  which 
is  in  British  hands,  and  one-half  of  the  Island  of 
Timor,  which  belongs  to  Portugal. 

The  Dutch  East  Indies  have  a  combined  area  of 
778,154  square  miles.  To  make  a  comparison,  the 
great  State  of  California  has  an  area  of  153,650 
square  miles,  which  is  about  the  same  area  as  the 
Island  of  Sumatra. 

The  total  population  is,  roughly  speaking,  about 
40,000,000  of  which  the  Island  of  Java  has  about 
32,000,000. 

The  Island  of  Java,  therefore,  which  has  only 
about  50,554  square  miles,  or  less  than  7  per  cent  of 
the  total  surface  area,  has  something  like  75  per  cent 
of  the  total  population. 

The  population  is  legally  divided  into  two  groups. 
The  first  is  composed  of  Europeans  and  those  holding 
the  same  rights  as  Europeans,  all  naturalized  for- 
eigners belonging  to  this  group.    The  second  group  is 

31 


composed  of  natives  and  those  enjoying  the  same 
rights  as  natives,  such  as  Arabs,  Moors,  Chinese,  Mo- 
hammedans and  all  non-Christians. 

The  whole  first  group  does  not  consist  of  more 
than  100,000,  all  the  rest  of  this  tremendous  island 
population  belonging  to  the  second  group. 

A  great  part  of  the  Europeans  are  employed  in 
or  have  retired  from  the  government  service.  Next 
in  number  are  the  planters,  merchants  and  manu- 
facturers. 

The  Arabs,  Chinese  and  other  Orientals  are  al- 
most all  tradesmen  and  shopkeepers,  with  the  excep- 
tion of  a  rather  large  number  of  Chinese  who  work 
as  laborers  on  the  tobacco  estates  on  the  east  coast 
of  Sumatra.  All  told,  there  are  about  600,000  Chinese 
in  the  East  Indies.  Some  of  these  are  enormously 
wealthy. 

That  order  can  be  maintained  and  prosperity 
fostered  by  so  small  a  white  population  amongst  so 
many  natives  speaks  volumes  for  the  wisdom  of  the 
Netherlands  East  Indian  Government. 

The  overwhelming  majority  of  the  population  is 
native,  of  which  75  per  cent  are  tillers  of  the  soil, 
either  on  their  own  account  or  as  agricultural  labor- 
ers on  estates,  while  about  25  per  cent  of  the  native 
population,  especially  in  Java,  make  a  living  as  shop- 
keepers, craftsmen,  fishermen  and  in  domestic  service 
as  coachmen,  chauffeurs,  etc. 

The  first  European  to  visit  the  East  Indies  was 
Marco  Polo,  the  Venetian,  who  in  1292,  on  his  home 
voyage  from  China,  touched  at  the  northern  part  of 
Sumatra. 

In  the  Middle  Ages  spices  were  carried  from  this 

32 


island,  partly  by  way  of  Egypt  and  Asia  Minor  in 
Italian  ships,  and  partly  by  a  caravan  route. 

It  was  in  1498  that  the  Portuguese  Vasco  da 
Gama  landed  in  India,  and  a  few  years  afterwards 
Portuguese  ships,  commanded  by  d' Albuquerque,  vis- 
ited the  Indian  Archipelago.  These  of  course  trans- 
ported the  Indian  wares  in  Portuguese  ships  to  Lis- 
bon. It  was  only  in  1596,  a  hundred  years  after  the 
advent  of  the  Portuguese,  that  Dutch  ships  arrived  in 
Java,  yet  by  1602  the  great  Dutch  East  Indian  Com- 
pany was  established.  This  company  remained  in 
existence  till  1798,  when  its  possessions  fell  to  the 
State.  From  the  year  1619,  when  the  great  Malay- 
Javanese  stronghold  "Jacatra"  (now  Batavia)  was 
stormed  and  taken,  the  Islands  have  been  under  Dutch 
control. 

In  the  nineteenth  century,  modern  ideas  of  colon- 
ization generally  prevailed,  and  the  administration 
was  zealously  reorganized  according  to  western  prin- 
ciples. 

Americans  who  study  governmental  systems  may 
well  consider  that  the  Dutch  Government  has  always 
drawn  a  sharp  line  between  "colonies"  and  "posses- 
sions," and  so  has  the  British  Government.  To  throw 
a  ready-made  western  civilization  boldly  on  to  an 
Oriental  people  who  have  neither  desire  nor  aptitude 
for  it,  is  a  mistake  which  has  not  been  committed  by 
the  Government  of  the  Netherlands. 

The  foregoing  matters  should  be  kept  in  mind, 
because  the  query  propounded,  How  can  trade  rela- 
tions between  the  United  States  and  the  Netherlands 
East  Indies  be  extended  and  improved? — may  be  put 
more  lucidly  this  way:    How  can  trade  relations  be- 

33 


tween  the  great  American  ports  and  their  great  bee- 
hive of  human  industry,  and  especially  native  human 
endeavor,  be  placed  on  a  solid  footing? 

I  use  the  words  ^^bee-hive  of  human  industry*' 
advisedly,  in  justification  of  which  the  following  tabu- 
lation : 

The  total  value  of  the  exports  in  the  year  1914 
was  about  650,000,000  guilders,  as  against  a  total 
value  of  exports  in  the  year  1895  of  200,000,000;  or 
to  put  it  in  American  money,  in  1895  the  total  value  of 
the  exports  was  $80,000,000,  while  twenty  years  later 
it  was,  roughly  speaking,  $260,000,000.  An  increase 
of  320  per  cent. 

The  chief  product  exported  from  the  country  is 
sugar.  The  value  of  this  commodity  alone,  in  1914, 
was  over  $70,000,000. 

Tobacco  comes  next  with  $26,000,000  to  its  credit, 
then  copra  with  $24,000,000,  Java  tea  $10,000,000, 
coffee  $9,000,000,  pepper  $5,000,000,  rubber  $12,000,- 
000,  rice  $2,500,000,  maize  or  corn  about  $2,000,000, 
kapok  $2,500,000,  cassava  products,  $2,500,000,  and 
tin  about  $15,000,000. 

These  figures,  of  course,  are  approximate,  but 
the  exact  amounts  can  be  had  on  request. 

To  give  an  idea  of  the  importance  of  these  figures 
let  me  state  that  in  proportion  to  their  population  the 
Netherlands  East  Indies  have  a  larger  trade  than 
either  China  or  Japan,  actually  exceeding  the  total 
export  from  China  in  1914  by  $19,000,000,  while  the 
total  Japanese  exports  in  the  same  year  were  only 
slightly  in  excess  of  the  Netherlands  East  Indies.  And 
still  Japan  has  a  population  almost  twice  as  large  as 
the  Indies. 

34 


What  share  did  the  United  States  have  in  this 
tremendous  export  trade? 

The  United  States  did  not  take,  in  1914,  quite 
$6,000,000  worth  of  goods,  or  very  little  over  2  per 
cent.  War  conditions  have  since  made  a  remarkable 
change  in  this  situation  as  will  be  shown  later. 

As  to  the  imports : 

We  find  that  in  1914  the  total  imports  in  the 
Dutch  Archipelago  amounted  to  about  $180,000,000, 
of  which  the  United  States  furnished  about  $3,750,- 
000,  likewise  a  little  over  2  per  cent.  And  this,  not- 
withstanding that  by  the  extension  and  development 
of  agriculture  in  the  East  Indies  the  demand  for 
machinery  and  steam  engines  has  greatly  increased, 
thereby  placing  the  American  exporter  in  an  especially 
favorable  position. 

Prior  to  the  war  the  Americans  neglected  the 
opportunity  to  obtain  and  hold  this  trade.  War  con- 
ditions suddenly  changed  the  whole  situation. 

This  was  not  due  by  any  means  to  the  foresight 
or  energy  of  the  American  merchant,  but  to  the 
activities  of  the  German  submarines  and  the  inability 
of  the  Netherlands  merchant  marine  to  follow  its  cus- 
tomary trade  routes,  first  through  the  Suez  Canal 
and  afterwards  around  the  Cape  of  Good  Hope  and 
Durban. 

When  navigation  through  coaling  necessities  and 
the  closing  of  former  markets  suddenly  veered  towards 
the  American  continent,  the  following  results  were 
obtained : 

Imports  from  the  Dutch  East  Indies  to  the  United 
States : 

35 


1913 $  6,221,954 

1914 5,334,361 

1915  9,245,784 

1916 27,716,589 

1917 62,011,236 

Exports  to  the  Netherlands  East  Indies  from  the 
United  States: 

1913 $  3,151,603 

1914 3,676,805 

1915  2,711,779 

1916 7,401,026 

1917 21,139,305 

When  these  figures  are  analyzed  the  Pacific  Coast 
shows  a  decidely  different  position  in  this  trade  from 
the  position  of  American  trade  with  the  Mother  Coun- 
try. While  the  latter  was  almost  monopolized  by 
the  Eastern  seaboard,  quite  another  condition  pre- 
vails as  to  the  East  Indian  trade. 

Of  the  total  import  of  $62,011,236,  San  Fran- 
cisco's share  was  $18,294,183,  while  of  the  total  ex- 
ports of  $21,139,305,  San  Francisco's  share  was 
$5,501,859.  The  figures  of  1918  will  show  that  the 
import  and  export  trade  of  San  Francisco  with  these 
Colonies  is  equal  to,  if  it  does  not  surpass,  that  of  the 
Eastern  seaboard,  for  the  imports  rose  from  $18,294,- 
183  to  $43,660,161  and  the  exports  from  $5,501,859 
to  $10,481,707. 

This  is  but  natural,  for  the  distance  from  New 
York  to  Batavia,  via  Suez  Canal,  is  10,182  miles;  and 
via  the  Cape  of  Good  Hope  11,855  miles;  while  the 
distance  from  San  Francisco  is  only  7800  miles.    Thus 

36 


the  West  is  considerably  nearer  to  the  Dutch  East 
Indies  than  New  York  or  Boston  and  this  should  prove 
an  important  factor  in  the  respective  trade  relations. 

The  list  of  products  which  the  islands  produce 
and  which  can  be  exported,  is  a  very  lengthy  one. 
Amongst  the  minerals  may  be  mentioned :  Tin  and  tin 
ore,  mineral  oils  and  petroleum  products,  gasoline, 
benzine  and  motor  spirit,  kerosene,  turpene,  solar  oil, 
diesel  oil,  batching  (spindle)  oil,  liquid  fuel,  lubricants 
and  greases,  parafRne  wax,  batik  wax,  candles,  as- 
phalt, coal  and  coke,  marble,  gold,  silver,  diamonds 
and  other  precious  stones,  manganese,  mercury,  cop- 
per iodide,  sulphur,  tungsten,  lead,  cement  and  cement 
products,  tiles,  scrap  metal. 

Plants  and  vegetable  products :  Rattan  and  ma- 
lacca  sticks,  bamboos;  timber — teakwood,  ebony,  san- 
dalwood, palisanderwood,  rootwood,  ironwood;  iron- 
wood  roofing;  fibres — kapok,  cotton,  manila  hemp, 
sisal  hemp,  cantala  fibre,  cocoanut  fibre,  areng  palm, 
vegetable  silk;  hats — ^pandan  hats,  bamboo  hats  and 
manila  hats,  imitation  panama  hats;  cane  sugar  in 
its  various  grades;  molasses;  cattle  food — molascuit, 
oil  cake ;  paper  stock,  various  timbers  and  fibres,  corn, 
rice  polished  and  unpolished;  cocoa  beans,  indigo,  to- 
bacco, cigars  and  cigarettes;  tea,  tanning  material — 
gambier,  cutch,  penang  nuts,  cassis,  barks;  coflfee, 
cocoanuts,  copra,  cocoanut  oil;  other  oleaginous  ker- 
nels and  vegetable  fats — peanuts  and  peanut  oil,  ka- 
pok seed  and  oil,  cottonseed  and  oil,  ricinus  seeds; 
castor  oil,  soya  beans,  candlenuts;  vegetable  ivory;  es- 
sential oils — citronella  oil,  lemongrass  oil,  canaga  oil, 
cajeput  oil,  sandalwood  oil,  palmrose  oil;  perfumery, 
drugs — ^Peruvian   bark,   quinine  salts,   native   drugs 

37 


and  herbs;  gutta  percha,  rubber  and  similar  kinds  of 
latex,  tapioca  products,  sago  and  sago  flour,  gums  and 
rosins,  alcohol — arrack  and  spirits;  spices — nutmeg, 
mace,  cloves,  black  and  white  pepper,  cubebs,  chiles, 
cinnamon  and  cassia,  vanilla  and  vanilline;  fruit — 
native  delicacies  and  foodstuffs. 

Chinese  delicacies ;  hides  and  skins — buffalo  hides, 
cow  hides,  goat  and  sheep  skins;  leather,  horns,  bone- 
dust,  beeswax,  ceresine,  shells,  mother-of-pearl,  etc. 

Surely  a  bewitching  variety  of  commodities. 

Of  those  articles  which  would  especially  appeal  to 
the  American  exporter  to  the  Islands,  I  mention:  Ale 
and  beer,  biscuits,  butter,  natural;  butter,  margarine 
and  artificial;  candles,  cement,  cheese,  chemicals,  all 
kinds;  copper  and  brassware,  cordage  and  twines, 
cotton  goods,  drugs  and  medicines,  flour,  wheaten; 
glass  and  glassware,  india  rubber  goods,  iron  and 
steel,  ironware,  machines  and  machinery,  matches, 
milk,  condensed;  milk,  sterilized;  mineral  water,  mo- 
tor cars,  paints,  colors  and  varnishes;  paper,  writing; 
paper,  all  other;  perfumery;  railway  material,  not  in- 
cluding rails;  rice,  husked;  sewing  machines,  soap, 
all  kinds ;  typewriters,  yarns,  all  kinds ;  woolens,  goods 
and  mix. 

At  the  present  time  the  means  of  communication 
between  New  York  and  San  Francisco  and  the  East 
Indian  ports  are  ample,  being  maintained  by  several 
Netherlands  steamship  companies. 

The  distance  between  the  most  westerly  and  the 
most  easterly  points  in  the  Dutch  East  Indies  is  3000 
miles.  To  accommodate  the  traffic  between  the  islands 
there  is  a  packet  steamboat  company  which  has  fifty- 


five  larger  and  smaller  boats,  some  with  a  tonnage  of 
5000  and  with  a  total  of  168,257  tons. 

The  great  question  is:  In  how  far  the  present 
relations  can  not  only  be  placed  on  firm  footing,  but 
extended,  so  that  this  rich  treasure  house  of  the  East 
Indies  may  yield  part  of  its  abundance  of  wealth  to 
New  York  and  San  Francisco? 

With  the  closing  of  the  North  Sea,  with  the  shut- 
ting off  of  the  German  markets,  with  the  French,  Brit- 
ish and  other  factories  employed  in  making  war  ma- 
terials, the  Netherlands  East  Indies  have  been  forced 
to  come  here  with  products  which  were  formerly  ex- 
ported to  Europe.  Export  trade  with  the  Netherlands 
East  Indies,  before  the  war,  as  we  have  shown,  was 
negligible;  with  the  disturbed  political  conditions  it 
has  grown  tremendously,  as  undoubtedly  last  year's 
statistics,  and  especially  this  year's  statistics  will 
prove. 

What  has  the  American  business  man  done  to 
make  this  trade  permanent? 

I  fear  that  in  most  cases  the  answer  will  be — lit- 
tle or  nothing. 

I  do  not  mean  to  say  that  a  great  many  merchants 
have  not  used  energy  to  capture  the  present  trade;  I 
speak  from  a  broader  standpoint. 

"Spot  cash"  for  goods  was  demanded  either  in 
San  Francisco  or  New  York;  or  C.  L  F.  (cost,  insur- 
ance, freight)  Java^  which  of  course  works  out  as 
**cash  payment  against  surrender  of  documents  in 
Java."  But  will  this  work  when,  for  instance,  other 
merchants  will  again  offer  long-time  credits,  three 
months  and  more? 

There  are  excellent  trade  opportunities  in  the 

39 


present  rush  of  American  goods  to  the  East  Indies  and 
in  the  equally  great  rush  of  Netherlands  East  India 
goods  to  the  ports  of  New  York  and  San  Francisco. 
But  is  the  American  merchant  playing  for  permanent 
relations,  or  only  for  immediate  trade? 

Present  world-conditions  have  given  American 
business  men  an  opportunity  in  the  East  India  Trade 
almost  in  spite  of  themselves. 

But,  it  may  be  asked,  will  the  activities  of  the 
American  merchants  and  firms  be  welcome  in  the 
Netherlands  East  Indies? 

The  Dutch,  with  the  tolerance  which  has  made 
them  famous  throughout  history,  have  not  only  no 
fear  of  foreign  relations  or  domination  through  the 
introduction  of  foreign  capital  in  the  business  of  the 
Colonies,  but,  on  the  contrary,  welcome  the  invest- 
ment of  foreign,  and,  above  all,  American  capital. 

They  would  welcome  a  further  extension  of 
American  capital  because  the  islands  are  still  of  such 
rich  potential  strength  that  they  are  still  open  to 
tremendous  further  development. 

Any  foreign  organization  can  do  business  in  the 
East  Indies,  provided  it  incorporates  a  branch  under  a 
Dutch  charter  and  appoints  a  resident  Hollander  di- 
recting manager.  Before  the  war  German  enterprise, 
especially,  had  grown  tremendously.  The  business 
world  in  the  East  Indies  present  a  decidedly  cos- 
mopolitan aspect.  Even  the  Holland  Government  em- 
ploys a  great  many  foreigners  in  its  service. 

The  Dutch  East  Indies  are  not  only  a  great  co- 
lonial but  a  great  commercial  empire,  for  no  other 
Asiatic  country  has  a  greater  production  per  capita. 

No  other  country  or  possession  in  Asia  offers 

40 


greater,  safer  or  better  advantages  for  investment 
of  American  capital. 

But  it  will  take  determined  effort  and  energy, 
knowledge  and  broad  views  to  capture  permanently  a 
considerable  part  of  this  magnificent  trade  and  place 
it  on  a  solid  footing. 

Where  American  banking  accommodations  do  not 
exist,  where  no  American  ships  transport  goods  under 
the  American  flag,  and  where  only  a  comparatively 
small  American  capital  is  invested  in  the  Indies,  it 
will  be  most  difficult,  if  not  impossible,  not  only  to  de- 
velop but  even  to  hold,  under  normal  conditons,  a 
trade  established  under  peculiar  conditions. 

American  capital  has  to  a  moderate  extent  been 
invested  in  rubber  plantations.  There  is  no  country 
that  uses  more  rubber  than  the  United  States,  There 
is  no  country  that  produces  better  rubber  than  the 
Netherlands  East  Indies.  On  account  of  the  proxim- 
ity of  the  East  Indies  to  the  port  of  San  Francisco 
this  port  should  be  a  great  rubber  market. 

American  capital  should  be  especially  attracted  to 
the  production  of  raw  materials  for  which  there  is 
such  a  demand  at  the  present  time,  and  those  manu- 
facturers who  are  vitally  interested  in  the  finished 
product  are  the  logical  persons  to  be  interested  in  the 
production  and  importation  of  the  raw  materials. 

In  the  year  1914  there  was  invested  in  the  Neth- 
erlands East  Indies  $120,000,000  in  rubber  planta- 
tions, of  which  about  one-half  was  in  Java  and  the 
balance  divided  between  Sumatra  and  Borneo.  This 
total  was  roughly  divided  as  follows : 

41 


Netherlands  capital   $53,000,000 

English  capital  55,000,000 

Belgian,  French,  German  and 

Swedish  capital,  about 12,000,000 

The  grand  total  of  American  capital  invested  was 
nothing  in  Java,  nothing  in  Borneo  and  $400,000  in 
Sumatra.  In  the  last  few  years  there  has  been  some 
improvement  in  this  respect,  but  nothing  compared 
to  what  it  should  be. 

Two  more  industries  in  which  American  capital 
could  be  engaged  with  exceeding  profit  are  oil-bearing 
plants,  especially  oil-bearing  palms  and  sisal. 

Pre-eminent  amongst  the  exports  of  oil-bearing 
substances,  especially  for  the  making  of  oleomar- 
garine, stands  copra,  which  has  an  oil  percentage  of 
60  to  75  per  cent,  in  fact  the  highest  oil  percentage 
of  any  known  vegetable  material.  Large  amounts  of 
copra  and  cocoanut  oil  are  now  being  imported  to  the 
United  States. 

Exports  of  copra  from  the  Netherlands  East 
Indies  in  the  year  1914  amounted  to  about  250,000 
tons.  The  export  of  cocoanut  oil  was  in  that  year  com- 
paratively negligible,  but  has  grown  very  much  since. 
The  increase  of  the  export  from  1909  to  1914  was 
about  50  per  cent. 

One  half  of  this  copra  was  exported  to  the  Nether- 
lands ports,  while  the  other  half  was  divided  over  a 
number  of  ports,  the  main  ones  being  Marseilles, 
Hamburg  and  Singapore;  but  the  total  imports  to  the 
United  States  from  the  Netherlands  East  Indies  was 
about  300  tons. 

Are  these  conditions  going  to  return? 

42 


The  answer  is,  Yes,  they  will,  to  a  large  extent, 
unless  American  merchants  and  American  capital 
will  take  more  interest,  not  only  in  the  trade  of  these 
articles  but  also  in  their  production.  They  must  take 
a  kindly  interest  in  these  colonies  and  their  industries, 
and  not  merely  figure  what  they  can  make  on  a  21/^  or 
5  per  cent  commission  business.  If  they  don't,  others 
will. 

"Henequen,"  from  which  sisal  is  derived — ^the 
fibre  used  largely  by  our  American  farmers  in  tying 
their  grain — must  appeal  to  them. 

Sisal  is  very  largely  imported  from  Yucatan  at 
the  present  time. 

The  recent  history  of  this  commodity  in  the 
American  markets  is  well  known.  The  combined 
growers  in  Yucatan  practically  dictate  to  the  Amer- 
ican twine  manufacturers  the  price  of  raw  fibre, 
which  in  1914  was  5%  per  cent,  and  which  was 
lately  about  16^/2  per  cent.  The  United  States  manu- 
facturers will  pay  this  year  more  than  forty  million 
dollars  for  the  same  raw  material  for  which  they  paid 
thirteen  million  dollars  prior  to  1915. 

There  is  no  American  import  tariff  on  sisal,  but 
Yucatan  has  an  export  tariff  of  $40  a  ton.  There  is 
nothing  which  prevents  this  country  or  Mexico  from 
increasing  that  tariff. 

The  grain  binders  cannot  tie  and  cut  soft  fibre 
made  from  cotton,  Kentucky  hemp  or  fiax  fibre.  In 
order  to  cut  a  soft  twine  a  mechanism  with  scissors 
would  be  required,  and  the  wear  and  tear  over  rocky 
grain  fields  makes  this  impracticable. 

Twine  made  of  sisal,  on  the  other  hand,  is  hard 


43 


and  stiff  and  can  be  drawn  across  the  edge  of  a 
bar  which  breaks  it. 

There  is  only  one  area  in  the  United  States 
where  one  can  grow  sisal  satisfactorily:  a  very  small 
part  of  Florida.  Sisal,  how^ever,  cannot  be  grown 
commercially  in  small  amounts,  for  it  takes  extensive 
machinery  to  handle  the  crop,  and  large  tracts  are  not 
available  in  Florida  for  that  purpose.  Then  there  is 
also  the  labor  question. 

The  Netherlands  East  Indies  offer  an  excellent 
field  for  this  purpose. 

The  product  has  not  been  grown  to  a  great  ex- 
tent in  the  East  Indies  for  the  reason  that  the  greatest 
dem.and  came  from  the  American  market,  and  this 
market  was  supplied  by  the  Yucatan  growers. 

The  continued  disturbance  in  the  political  situa- 
tion of  Mexico,  however,  has  given  rise  to  the  ex- 
orbitant export  duty  on  this  article,  all  of  which  the 
ultimate  consumer  must  pay. 

Lands  can  be  obtained  and  plantations  operated 
without  difficulty.  There  is  an  abundance  of  labor 
on  hand  and  political  conditions  are  not  to  be  feared. 
Verily,  the  Netherlands  East  Indies  offers  a  tempting 
field  for  this  as  well  as  for  other  cultures. 


44 


Chapter  IV. 

Trade  with  the  Netherlands  West  Indies 

The  commerce  between  the  United  States  and  the 
Netherlands  West  Indies  can  be  divided  into  two  main 
subdivisions : 

1.  Trade  with  the  Colony  of  Curacao;  and 

2.  Trade  with  the  Colony  of  Suriname. 

(1.)  The  Netherlands  Colony  of  Curacao  con- 
sists of  six  islands  in  the  Caribbean  Sea,  north  of 
South  America.  They  are  divided  into  two  groups,  viz, 
Curacao,  Bonaire  and  Aruba  which  lie  in  the  neigh- 
borhood of  Venezuela,  and  Saint  Eustache,  Saba  and 
Saint  Martin  (the  latter  being  partly  Netherlands, 
partly  French  territory),  formerly  part  of  the  Lee- 
ward Islands  or  Lesser  Antilles. 

In  1634  the  Netherlands  West  Indian  Company 
took  possession  of  Curacao;  afterwards  it  passed  to 
the  State  and  has  ever  since  been  Netherlands  terri- 
tory. During  the  war  of  American  Independence 
Willemstad,  the  capital,  became  a  very  important 
factor  in  the  trade  of  the  neighboring  commercial 
countries. 

The  comparatively  limited  size  of  these  islands, 
and  therefore  their  restricted  production  and  power 
of  consumption,  make  it  unlikely  that  they  will  ever 
become  big  factors  in  American  overseas  trade  de- 
velopment. 

We  may  note  the  important  straw  hat  industry 

45 


of  Curacao,  the  growing  of  cotton  in  Saint  Eustache 
and  Saint  Martin,  and  a  few  other  cultivations,  as  for 
instance  that  of  the  agava  sisalana,  also  the  salt  and 
phosphate  production,  all  of  which  may  attain  con- 
siderable importance.  But  the  main  interest,  for 
years  to  come,  must  be  the  shipping  facilities  which 
these  islands  offer. 

Of  these  islands  Curacao  is  the  most  important. 
Here  is  the  seat  of  government  of  the  Colony;  it  is 
the  largest  in  size,  and  has  the  most  numerous  popula- 
tion, and  it  also  occupies  a  strategical  position  in  the 
world's  trade  routes.  The  harbor  of  its  principal  city, 
Willemstad,  is  one  of  the  very  finest  in  the  world. 

The  temperature  is  tropical,  but  is  tempered  by 
trade  winds,  Willemstad  being  one  of  the  healthiest 
harbor  towns  in  the  West  Indies. 

The  harbor  is  benefited  by  its  situation  outside 
of  the  dreaded  hurricane  zone,  and  a  great  many  ves- 
sels often  take  refuge  there  during  the  so-called 
hurricane  months.  After  steamship  navigation  had 
largely  displaced  sailing  ships,  some  decline  was 
noticed,  but  the  opening  of  the  Panama  Canal  and  the 
expected  large  increase  in  shipping  through  the  Carib- 
bean Sea  is  bound  to  bring  this  harbor  again  to  its 
former  prominence. 

Willemstad  is  situated  only  695  geographical 
miles  from  Colon,  and  near  the  route  of  ships  com- 
ing from  the  North  American  coast,  from  Africa  and 
the  Mediterranean  Sea,  bound  for  the  Panama  Canal. 

Also,  a  very  large  portion  of  the  shipping  from 
the  harbors  of  the  west  coast  of  North  and  South 
America,  through  the  Canal  to  the  Atlantic  Ocean, 
|)a3se?  Curacao. 

46 


The  Government  of  the  Islands,  foreseeing  these 
conditions,  provided  extensive  quays,  excellent  coaling 
depots,  good  water  and  ice  supplies,  and  very  low 
harbor  fees.  The  Colony  is  in  cable  and  wireless 
communication  with  the  rest  of  the  world. 

Extensive  harbor  improvements  are  now  under 
way  for  the  purpose  of  making  the  harbor  comply 
with  the  requirements  of  modern  traffic.  Especially 
as  a  coaling  station  will  the  harbor  increase  in  im- 
portance for  the  American  trade.  The  price  of  coal 
is  relatively  cheap,  in  fact  cheaper  in  comparison 
with  other  West  Indian  harbors,  and  the  quality  is 
excellent.  Furthermore,  the  labor  for  coaling  is  cheap, 
and  taking  into  consideration  that  Curacao,  on  ac- 
count of  its  climatic  conditions,  is  an  excellent  harbor 
of  refuge,  it  does  not  take  a  very  vivid  imagination 
to  forecast  its  future  importance  as  a  link  in  Amer- 
ican sea  trade. 

That  American  authorities  agree  as  to  the  facili- 
ties offered  by  this  harbor  is  evidenced  by  the  fact  that 
several  years  ago  the  American  Navy  Department 
stated  that  "Curacao  has  the  advantage  of  possessing 
one  of  the  finest  and  most  commodious  harbors  of  the 
West  Indies.^'  (See  "The  Navigation  of  the  Gulf  of 
Mexico  and  Caribbean  Sea,"  Vol.  II,  No.  64;  1907.) 

(2.)  Suriname  is  the  name  of  Netherlands 
Guiana,  situated  on  the  east  coast  of  South  America. 
It  lies  between  British  and  French  Guiana,  and  is  the 
only  possession  of  the  Netherlands  on  the  American 
Continent.  It  came  into  Netherlands  ownership  after 
the  second  war  between  England  and  the  Republic  of 
the  United  Netherlands.     By  the  Peace  of  Breda  in 

47 


1667  it  was  confirmed  in  the  possession  of  the  Re- 
public. 

Though  trade  with  this  Colony  must  be  modest 
compared  to  American  trade  with  the  Netherlands 
East  Indies,  still  it  is  in  no  sense  of  the  word  a  negligi- 
ble factor  now,  and  the  possibilities  in  the  future  are 
great. 

An  obstacle  to  the  proper  economic  development 
of  this  Colony,  by  Nature  so  richly  endowed,  is  its 
lack  of  population.  At  the  present  time  the  total 
population  does  not  exceed  100,000  people,  and  the 
City  of  Paramaribo,  its  capital,  has  a  population  of 
35,000. 

For  a  long  time  efforts  have  been  made  to  stimu- 
late outside  interest  in  this  Colony,  and  to  induce 
sufficient  immigration  for  labor  and  sufficient  capital 
to  develop  its  very  rich  resources.  Native  labor  is 
unsatisfactory  in  many  respects,  and  Dutch  capital 
was  preoccupied  with  the  development  of  the  East 
Indies.  These  efforts  have  met  so  far  with  only  a 
modest  success. 

It  is  not  within  the  scope  of  this  article  to  enter 
into  an  extensive  discussion  of  the  causes  of  the  com- 
paratively small  development  of  Suriname,  nor  to 
suggest  a  modus  operandi  for  improvement.  I  wish 
only  to  suggest  the  role  which  American  capital  may 
play  in  the  development  of  these  rich  resources  on  the 
continent  of  one  of  the  Americas. 

At  the  present  time  most  of  the  products  of  Suri- 
name, such  as  coffee,  balata  (rubber)  and  cocoa,  find 
a  ready  market  in  the  United  States,  but  only  after 
more  capital  and  more  competent  and  expert,  and  also 
more  common  plantation  (coolie)  labor  are  invested 

48 


in  the  Colony,  can  the  trade  with  the  American  ports 
rise  to  its  just  level. 

The  soil  is  as  rich  as  any  in  the  world,  and  with 
American  methods  of  exploitation  and  cultivation 
Suriname  would  soon  double  and  triple  its  present 
production,  not  only  agricultural  but  also  mineral, 
especially  gold.  There  is  no  reason,  except  lack  of 
capital  and  labor,  why  this  Colony  should  not  be  as 
prosperous  as  Guatemala,  San  Salvador  or  any  of  the 
other  Central  American  republics. 

Investment  of  American  capital  is  safe,  both 
from  a  financial  and  political  standpoint.  The  planta- 
tion labor  question  will  eventually  be  solved  by  the 
importation  of  either  Hindu  labor  from  the  British 
East  Indies  or  Javanese  labor  from  the  Netherlands 
East  Indies.  Both  kinds  of  labor  have  already  been 
imported,  on  a  limited  scale,  for  the  last  few  decades 
and  have  proven  satisfactory,  both  from  the  stand- 
point of  the  employer  and  of  the  laborer.  The  British 
and  the  Netherlands  governments  exercise  a  strict 
supervision  over  the  welfare  of  their  nationals. 

This  Colony  needs  financial  investments  on  a  large 
scale.  Sooner  or  later  this  financial  development  is 
bound  to  come  from  the  United  States,  and  then  Suri- 
name will  be  in  a  position  to  obtain  the  bulk  of  its 
necessaries  in  the  American  market.  The  establish- 
ment in  Paramaribo  of  a  branch  of  one  of  the  large 
Eastern  American  banks  would  be  a  leading  factor  in 
this  development  and  would  prove  a  very  profitable 
investment. 


49 


amsmammmmm 

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